Market Update - Jul 15th '09

Pretty cheerful Bastille Day yesterday with prices rising to key level as anticipated. While overbought, Es should stay relatively high and maybe creep higher still. One cannot discard a return to stall level in the high 920 before the end of the week.

Does that change our mid term scenario ? Well, we're still in a channel for now, so this last few up days are part of normal trading activity, and again, 875 may have been the current bottom we've been looking for. There should be more selling down the line, so we may have range bound bound markets, which are music to the ear of income traders with condor positions.

We can notice a return to the 500 level on T. Like ES, and despite a short term bullishness, TF could reverse or stay range bound for a while. Here too, income traders can take advantage of price segments (16 or 32 points wide), separated by the 500 key level.

( posted 7:30 AM UK )